In 2024, the UK furniture retail market was worth almost £16bn, which marked a slight increase on previous years, despite the ongoing cost of living crisis that has impacted consumer spending.
However, getting a greater slice of that £15.8bn is challenging.
Competition is stiff – both from established giants and strong independents – and customer expectations are increasing, too.
Shoppers now expect a seamless, omnichannel retail experience and they expect instant responses from brands when they make an enquiry.
Feeling and having a connection is vitally important. Almost 75% of consumers are more likely to purchase from brands that offer personalised experiences, while 87% of customers actively avoid buying from brands they don’t trust.
“All of this goes to underline that having the right location, product, and people only goes so far,” says Alistair Wright, Product Director at Swan Retail.
“In today’s retail world, furniture retailers have got to create an experience, create a point of difference to make you stand out to attract new customers, and keep you in their hearts and minds so they want to return.”
Stepping out of the price zone
For any retail business, being competitive on price is important. After all, 83% of UK shoppers compare prices online before buying.
However, price isn’t the only factor – with 88% of buyers valuing the overall experience as much as the product or service itself, and 63% of people willing to pay more for a seamless and convenient experience.
And that’s good news – because no self-respecting retailer wants to get involved in a race to the bottom.
“The great news for furniture retailers is they’re really well placed to create genuine points of difference and memorable experiences,” says Alistair.
“Furniture’s rarely an impulse buy, so by creating that connection and trust, it’s likely customers will come to you out of choice – whether that’s in-store or online.”
Ideas to create your point of difference
To create a genuine point of difference, it’s important to offer customers far more than the transactional. There’s got to be a genuine depth to the experience of shopping with you. If there’s not, it will always come down to the price on the ticket.
There are a number of ways you can create that experience – it’s never one size fits all, and there’s never one simple solution.
But, by implementing a range of initiatives, you can create a point of difference and customer experience that will enable you to move beyond the price tag, and on to something far longer lasting and meaningful.
Here are six ways you can create a point of difference in your furniture store.
Personalised recommendations
By collecting customer data, including products they’ve bought, products they’re interested in and products they’ve looked at online, you can begin to understand customers as individuals – and then you can be more relevant than ever before. From email content to personalised offers, there’s an array of tactics you can employ to create a unique experience for them. If you can demonstrate you know your customer, you’re already one step ahead.
Personalised offers
By understanding individual preferences, you can then tailor offers and incentives specifically to each person. And, with a loyalty app, for example, customers are incentivised to keep in touch with you too. No longer is communication a one-way street – you can measure and more deeply understand everything you need to know to maximise your customer lifetime value.
Sharing your brand story
Research shows that customers who have a strong emotional connection to a brand have a lifetime value of 306% greater than customers who don’t, while 63% of customers are more likely to remain loyal to a brand if they feel connected to its story. Many furniture stores have a long and rich history, or a passion that fuels the every day – and, add to the fact that 60% of UK customers have the desire to shop local, and it’s clear to see the opportunity is there. Capitalise on it by telling your brand story well, making heroes of your people, and building a genuine connection – which taps back into trust.
Offering ideas and advice
Customer loyalty is nurtured by people, and by automating systems and processes it creates more time for your people to spend with your customers. The more advice, information, knowledge and insight your people can share, the greater their value to your customer. The greater and more valuable that relationship, the more likely it is people will not only purchase, but come back to purchase, too.
Offering a seamless, omnichannel experience
Your website is a crucial part of your business. It’s no longer a marketing brochure or shop window, it’s a sales platform in its own right – as well as being a key part of your customer experience, too.
Your products need to be on there. Customers need to be able to purchase online, ask questions online, and connect with your brand online. It needs to be a seamless experience, and utterly consistent with the experience you deliver in store. Online and bricks and mortar are no longer two, separate components – they’re now one and the same, seamless and together – and your software solution needs to enable that.
Building a furniture retail brand for the future
Regardless of whether you’ve been in business for half a century and have a chain of stores, or are a one-store operation with just months of experience, there are some similar challenges to overcome.
“Having solid foundations is essential for anyone building anything, and in today’s retail world, those foundations come in the form of the technology that underpins your every day, and brings online and offline together,” says Alistair.
“By having the proven, purpose-built solution underpinning everything you do, you can gain incredible insights that enable you to see your business differently, and the time to invest in what really matters – and creating a point of difference to stand out from your competitors, is key.”
Download our ebook – 9 challenges facing independent furniture retailers – and how to solve them.
